*INSTANT* Starbuck's Coffee? What the..?

Innovation or insanity? My brain is hurting thinking about the strategic thinking behind this.



For those of you in Finland and the rest of the world who have never had a Starbuck's Coffee, it is probably one of the nicest half hour experiences you can have. Remember--I said 'experiences.'

Many of my Canadian friends are probably booing me already, but coming from Vancouver I'm a big fan of Starbuck's (or at least the Starbuck's from the 1990s). Some complain about the taste of Starbuck's coffee, some complain about their prices, some complain about it being a large corporation. All true. It tastes burnt. It's expensive. And it's a large corporation.

But I still like Starbuck's. Personally, I don't look at it like I am paying $3-4 for a coffee. What I am paying for is 30 - 60 minutes of sitting in a nice comfortable chair in nice surroundings, maybe with some friends chatting or reading one of their free newspapers, listening to relaxing (cool?) tunes, watching the world go by while I drink a fairly decent cup of coffee. To me, $3 - 4 for that experience is pretty cheap.

I have also purchased Starbuck's in a rush before work. Why did I choose Starbuck's over other brands? Memories. I was buying myself a little piece of those lazy Sunday afternoons. Pure and simple. It was the emotional attachment.

Now, I understand the instant coffee industry is huge and lucrative. But let's be honest, nobody buys instant coffee for taste. It tastes like freeze-dried crap. It's just convenient and fast. Hot water, stir, go. Will instant Starbuck's command the same emotional experience for me? No. It cuts me (and everyone else) off from the quintessential Starbuck's experience. At least, getting it to go, you are inside the store for a few minutes.

This is where it hurts my brain. Why should a company that created "the coffee experience" for North America want to fight over scraps from the food stuffs industry? Well, if they want to hit profit targets for shareholders, they have to. It's the same thinking that led them to overexpand and become the McDonald's of coffee. This decision just has pure desperation written all over it.

Would I ever buy instant Starbuck's? No. Will they conquer the instant coffee market? No. Will they carve out a niche? Yes. Is it a good decision strategically? Personally, I think it's insane from a marketing standpoint. They are watering down their brand all over again and for what? Then again, I'm looking at it from a marketing perspective. I don't have blood-thirsty investors breathing down my neck every three months either.

Let me know what you think.

Stay inspired!

Cheers,
Maurice
www.voiceone.fi